HDFC Bank Starts Rebranding Process For HDFC Ltd Offices, Branches After Merger

HDFC Ltd's corporate headquarters at Ramon House is among the places where the branding has already been changed, and the entire exercise of changing the look is slated to take about 24 hours. 

On the first day of operations as a merged entity, HDFC Bank started the rebranding exercise of mortgage lender HDFC's offices. All 500 offices and branches of the home loans major are getting HDFC Bank's look, the company officials said, reported PTI. As per the report, HDFC Ltd's corporate headquarters at Ramon House is among the places where the branding has already been changed, and the entire exercise of changing the look is slated to take about 24 hours. 

HDFC Bank, the largest private sector lender in the country, merger with HDFC Ltd, the world's largest pure-housing finance firm, came into effect on Saturday. The boards of directors of both companies approved the merger plan, which was initially proposed on April 4 last year. As a result of the merger, HDFC Ltd, which had been in operation for 44 years, will cease to exist as an independent entity.

As per the report, HDFC Bank MD and CEO Sashidhar Jagdishan is scheduled to speak at a town hall meeting later in the evening. Following the merger, around 3,500 HDFC personnel were incorporated into HDFC Bank.

The $40-billion merger between HDFC Bank and HDFC marks the largest deal in the history of Indian corporate. With this merger, HDFC Bank is poised to become the world's fourth most valuable lender and significantly narrow the asset size gap with state-owned SBI, positioning itself as the second-largest bank in India. As per the news agency, the merger was the result of regulatory changes that restricted the advantages of HDFC operating as a non-bank lending entity. 

The total business of the merged entity stood at Rs 41 lakh crore at the end of March 2023. The net worth of the entity is expected to surpass Rs 4.14 lakh crore following the merger. The combined profit of both entities reached approximately Rs 60,000 crore by the end of March 2023.

Upon the completion of the merger, HDFC Bank will be fully owned by public shareholders, while existing shareholders of HDFC will retain a 41 per cent ownership stake in the bank. To facilitate the merger, every HDFC shareholder will receive 42 shares of HDFC Bank for every 25 shares they currently hold.

"Saturday, July 1, 2023, to be the 'Effective Date' of the composite scheme of amalgamation, on which date the certified order of the NCLT sanctioning the Scheme will be filed by HDFC Investments, HDFC Holdings, HDFC Limited and HDFC Bank with the RoC," HDFC Bank said in a regulatory filing late on Friday.

In the statement issued on Friday, CEO Jagdishan said the combined strength will help create a holistic ecosystem of financial services. 

"We're truly happy to welcome the talented team of HDFC Ltd into the HDFC Bank family. I believe our journey will be defined by agility, adaptability, and a relentless pursuit of excellence. As we navigate the path ahead, we will embrace challenges as opportunities, learn from our experiences, and strive to be the benchmark of success and integrity in the financial services industry," he said.